Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales And Use Tax Law

CHAPTER 2. THE SALES TAX

Article 1. Imposition of Tax

Section 6052

6052. Reimbursement. [Repealed by Stats. 1978, Ch. 1211, effective January 1, 1979.]

Collection not mandatory.—This section does not require a retailer to collect reimbursement for sales tax from consumers. Diamond National Corp. v. State Board of Equalization (1976) 60 Cal.App.3d 283 on remand from (1976) 425 U.S. 628.

Note.—Stats. 1978, Ch. 1211, effective January 1, 1979, added Section 1656.1 to the Civil Code, amended by Stats. 1985, Ch. 20, effective April 1, 1985, as follows:

CIVIL CODE

1656.1. Reimbursement. (a) Whether a retailer may add sales tax reimbursement to the sales price of the tangible personal property sold at retail to a purchaser depends solely upon the terms of the agreement of sale. It shall be presumed that the parties agreed to the addition of sales tax reimbursement to the sales price of tangible personal property sold at retail to a purchaser if:

(1) The agreement of sale expressly provides for such addition of sales tax reimbursement;

(2) Sales tax reimbursement is shown on the sales check or other proof of sale; or

(3) The retailer posts in his or her premises in a location visible to purchasers, or includes on a price tag or in an advertisement or other printed material directed to purchasers, a notice to the effect that reimbursement for sales tax will be added to the sales price of all items or certain items, whichever is applicable.

(b) It shall be presumed that the property, the gross receipts from the sale of which is subject to the sales tax, is sold at a price which includes tax reimbursement if the retailer posts in his or her premises, or includes on a price tag or in an advertisement (whichever is applicable) one of the following notices:

(1) "All prices of taxable items include sales tax reimbursement computed to the nearest mill."

(2) "The price of this item includes sales tax reimbursement computed to the nearest mill."

(c) (1) The State Board of Equalization shall prepare and make available for inspection and duplication or reproduction a sales tax reimbursement schedule which shall be identical with the following tables up to the amounts specified therein:


4¾ percent
Price Tax
.01 - .10 .00
.11 - .31 .01
.32 - .52 .02
.53 - .73 .03
.74 - .94 .04
.95 - 1.15 .05

5 percent
Price Tax
.01 - .09 .00
.10 - .29 .01
.30 - .49 .02
.50 - .69 .03
.70 - .89 .04
.90 - 1.09 .05

5¼ percent
Price Tax
.01 - .09 .00
.10 - .28 .01
.29 - .47 .02
.48 - .66 .03
.67 - .85 .04
.86 - 1.04 .05

5½ percent
Price Tax
.01 - .09 .00
.10 - .27 .01
.28 - .45 .02
.46 - .63 .03
.64 - .81 .04
.82 - .99 .05
1.00 - 1.18 .06

5¾ percent
Price Tax
.01 - .08 .00
.09 - .26 .01
.27 - .43 .02
.44 - .60 .03
.61 - .78 .04
.79 - .95 .05
.96 - 1.13 .06

6 percent
Price Tax
.01 - .08 .00
.09 - .24 .01
.25 - .41 .02
.42 - .58 .03
.59 - .74 .04
.75 - .91 .05
.92 - 1.08 .06

6¼ percent
Price Tax
.01 - .07 .00
.08 - .23 .01
.24 - .39 .02
.40 - .55 .03
.56 - .71 .04
.72 - .87 .05
.88 - 1.03 .06

6½ percent
Price Tax
.01 - .07 .00
.08 - .23 .01
.24 - .38 .02
.39 - .53 .03
.54 - .69 .04
.70 - .84 .05
.85 - .99 .06
1.00 - 1.15 .07

6¾ percent
Price Tax
.01 - .07 .00
.08 - .22 .01
.23 - .37 .02
.38 - .51 .03
.52 - .66 .04
.67 - .81 .05
.82 - .96 .06
.97 - 1.11 .07

7 percent
Price Tax
.01 - .07 .00
.08 - .21 .01
.22 - .35 .02
.36 - .49 .03
.50 - .64 .04
.65 - .78 .05
.79 - .92 .06
.93 - 1.07 .07

7¼ percent
Price Tax
.01 - .06 .00
.07 - .20 .01
.21 - .34 .02
.35 - .48 .03
.49 - .62 .04
.63 - .75 .05
.76 - .89 .06
.90 - 1.03 .07

7½ percent
Price Tax
.01 - .06 .00
.07 - .19 .01
.20 - .33 .02
.34 - .46 .03
.47 - .59 .04
.60 - .73 .05
.74 - .86 .06
.87 - .99 .07
1.00 - 1.13 .08

(2) Reimbursement on sales prices in excess of those shown in the schedules may be computed by applying the applicable tax rate to the sales price, rounded off to the nearest cent by eliminating any fraction less than one-half cent and increasing any fraction of one-half cent or over to the next higher cent.

(3) If sales tax reimbursement is added to the sales price of tangible personal property sold at retail, the retailer shall use a schedule provided by the board, or a schedule approved by the board.

(d) The presumptions created by this section are rebuttable presumptions.

History.—Stats. 1985, Ch. 20, effective April 1, 1985, added table for rate of 7 percent. Stats. 1990, Ch. 1528, in effect January 1, 1991, added "or her" after "his" twice, revised tables of rates for 4¾ percent, 5 percent, 5¼ percent, 6 percent, 6¼ percent, 6½ percent and 7 percent, and added tables of rates for 5½ percent, 5¾ percent, 6¾ percent, 7¼ percent and 7½ percent.

1656.2. Preparation of sales tax reimbursement schedule. [Repealed by Stats. 1990, Ch. 1528, in effect January 1, 1991.]